Grant compliance, or ensuring the funds are being used as intended, is crucial in being able to continue receiving funding for current and future programs. For many organizations, state and federal grants are just a fact of life. Keeping on top of the requirements and ensuring that your organization is meeting the goals of the grant requirements is key.
Many organizations have a dedicated department to make sure they meet compliance, while others have their grant management spread across several offices. Coordination between all involved parties ensures the collaborative approach is a successful way to meet grant compliance. No matter what approach you take, this grant compliance is crucial for any organization that relies on government funding.
The process of ensuring your grant money is properly used and reported to the government is called grant compliance. Each type of program has its own standards, including rules and regulations that cover the handling of documentation, data reporting, impact, and progress. Whether or not you can meet the grant compliance requirements now impact your ability to obtain funding in the future.
One of the most important parts of grants management is grant compliance, and it’s important that grant professionals have some knowledge on the subject, even if you don’t add it to your portfolio. When following grant compliance guidelines, you ensure all policies are followed so your organization doesn’t lose its funding.
With limited funds available, each granting agency carefully selects organizations to award various grants. When you’re one of the organizations that are chosen, it’s crucial that you follow grant compliance. If you fail to follow these guidelines, you risk losing your current funding, as well as funding for future projects.
When it comes to issuing grants, those on both sides will need to follow grant compliance. In order for the grantor to continue receiving funds from the government that they can use to issue grants, they need to follow the rules set in place. For an organization to get a grant and continue using it, they have to meet the requirements set by the contract.
If you’ve received a grant, you should follow these steps to remain in good standing:
While every grant does vary, you’ll need to know the following for every grant:
For anyone that receives federal grants, the Office of Management and Budget (OMB) Compliance Supplement is one of the most valuable resources for information on grant compliance for federal grants. This cost-effective tool is great if you need to understand procedures, objectives, and compliance requirements for federal programs. It also contains the audit objectives and suggested procedures that can determine compliance.
Ineffective grant management is the primary risk with grants. Some of the ways a grant can be poorly managed include:
Keeping these risks in mind during the planning and grant compliance procedures is important, and they should be addressed with any teammates that are responsible for keeping things within the guidelines so you can meet the compliance requirements.
Your auditor should have some controls in place to cover grant compliance, which may include:
The issues above can be avoided if you have a system established to keep track of all grant information. You should be able to answer the following questions:
There are a few common types of grants that have compliance requirements. These include:
Ensuring that your organization meets the grant compliance requirements can seem like an overwhelming task, but it doesn’t have to be. When you choose SmarterSelect, we help by making grant management easy and efficient. SmarterSelect enables you to concentrate on your grant compliance efforts without having to worry about how to manage the grants. Reach out today to get started!